Determinants of Small and Medium Scale Enterprises in Nigeria

Abstract

Small and medium scale industries usually tend to develop and grow into medium and large scale industries. This form of growth yields to the development of the economy. However, the path to development of the economy has some challenges which are classified into internal and external factors. This study theoretically and empirically examined the various factors that affect the performance of SMEs in Nigeria. It employed the logistic regression method to establish that corruption is the major external factor that affects growth of SMEs. The study recommended that in order to achieve the desired objective of functional SMEs, the fight against corruption must be tackled from the foundation and then to the leadership position.